"Inflation is the reason the Fed can't step in to help. The Fed's preferred gauge hit 3.1% year-over-year in January 2026 and is expected to hover near 2.9% through December—well above the 2% target."
"Four of the last five major oil shocks since the 1970s ended in a recession, but the base case from most major forecasters still calls for positive growth in 2026."
"XRP is more exposed than Bitcoin in a recession because its value depends on something recessions directly shrink—cross-border payment volumes."
"U.S. spot XRP ETFs have pulled in $1.45 billion since November 2025, but weekly inflows have slowed from over $200 million early on to under $20 million recently."
The U.S. economy faces rising recession risks driven by geopolitical conflicts, particularly the Iran situation affecting oil supply, and persistent inflation. Oil prices have surpassed $95, complicating the Federal Reserve's ability to cut rates, which are now expected to remain high due to inflation above the target. While a recession is not yet certain, historical patterns suggest a downturn could follow oil shocks. XRP's value is particularly vulnerable in a recession due to its reliance on cross-border payment volumes, which would decline during economic downturns.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]